---
sidebar_position: 3
---

# 3 Layers of Rewards 💰

[Traders](/concepts/actors#traders) and [LPs](/concepts/actors#liquidity-providers) receive **3 Layers of Rewards** for participating in prePO markets.

## Position Profit

### Traders

Profit (or loss) from Long and Short positions.

### LPs

Trading fees.

## PPO Token Rewards

Traders and LPs receive [PPO token](/tokenomics) rewards for active participation in the protocol.

## Collateral Farming Rewards

All prePO positions are backed by [preCT](/concepts/prect), providing Traders and LPs a **passive yield** on top of their other rewards.

preCT operates **entirely in the background** and is **completely hidden from users**. All amounts in the UI are denominated in USD, with preCT earnings displayed simply as 'Interest Earned (USD)'.
